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Tuesday, 26 May 2015 16:42

EMC to acquire Virtustream

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Managed cloud software and services business Virtustream gets added to the EMC family to join VMware, RSA, VCE and Pivotal.

The newly inked $1.2 billion (£780 million) all-cash agreement between EMC and cloud software and services business Virtustream is turning storage giant EMC into a full-service cloud powerhouse with services that fulfill, compute, storage, virtualisation, turnkey-cloud and now managed cloud software and services.

The acquisition fills a missing slot in EMC’s strategy to help customers move their applications to cloud-based IT environments. Until now EMC could do the heavy lifting and the infrastructure but lacked the experience in running Iaas, and moving mission-critical legacy enterprise applications like SAP and others (see diagram below) in to a hybrid mix of public and private cloud. Until now business either had to do this themselves, or get a business like Virtustream to do it and manage it for them. 


Virtustream’s cloud software and Infrastructure-as-a-Service portfolio will be delivered directly to customers and through partners and EMC Federation service provider partners will receive access to Virtustream’s xStream cloud management software platform to adopt and deliver their own branded services.

At just six-years old Virtustream has had a rapid rise to success; it’s classed by Forrester as one of only two “Leaders” in the hosted private cloud solutions market and Gartner has recognised Virtustream in the Gartner Magic Quadrant for Cloud Infrastructure as a Service — one of the few independent companies to reach this status worldwide in public cloud IaaS.

As part of the agreement Virtustream will form EMC’s Managed Cloud Services Business and will operate as a separate EMC Federation business, with Virtustream CEO Rodney Rogers reporting to Joe Tucci2015, EMC Chairman and CEO and the all-cash transaction is expected to close in the third quarter of 2015.

Commenting on the acquisition Tucci2015 said. “With Virtustream in place, EMC will be uniquely positioned as a single source for our customers’ entire hybrid cloud infrastructure and services needs. We could not be more delighted that Virtustream will be joining the EMC Federation family. It’s a game changer.”

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